UK Money Transmitters Association – How Does it Work?

The UKMTA or UK Money Transmitters Association has its headquarters in England and it is responsible for operating national commercial banks. This authority was later renamed in 2014 as the Association of UK Payment Institutions or AUKPI which stood for Payment Institutions that were regulated by the FCA or Financial Conduct Authority.

The key role of the association is to be a forum in which member companies can get together for discussing and responding to issues that affect them in common. The association was also to offer services, including online anti-money laundering training to its members. Besides it represents industry interests to regulators, legislators, financial institutions, banks, and consumers in both European and the UK.

Member firms are authorized to provide any services which are permitted under the 2009 Payment Services Regulations. This includes money remittance, online foreign exchange and other related payments businesses, payment accounts, conduct of payment transactions, merchant acquiring, card processing, etc. This body also extends membership to those having interest in payments sectors like tech firms.

The UKMTA offers a centralized organization meant for money transfer companies in the UK. It discusses and examines all relevant issues regarding money transmission so as to promote and sustain high standards of business operations and professional competence. Both the FCA and HM Revenue and Customs recognize the role of UKMTA.

What UKMTA does:

  • This association is expected to hold 4 conferences in London annually and other meetings. These will be attended by those who have an interest in money transfers to discuss issues that concern them.
  • It must act as the representative of this industry inside the UK and European Union to be the voice of small and medium-sized enterprises.
  • It must engage in dialogue with regulators to make sure that regulations are uniformly and consistently applied.
  • It is responsible for promoting high standards in the money transfer industry.
  • It must have effective dialogue with UK banks to make sure they act reasonably with money transmitters.
  • Must offer training and support for money transmitters so that they can abide by AML regulations.
  • The body must set up and promote what are “best practice” models regarding issues like training systems, customer ID checks, record keeping, reporting of suspicious transactions, and audit trails etc.

These are some of the duties that the UK Money Transmitters Association is expected to perform. You can become a full member if your company is registered as money transfer “Principle” with the HM Revenue and Customs. Full members have the power to vote during meetings or hold office. Banks, government officials, and money transfer agents can get associate membership. They have speaking rights but no voting rights at meetings. The Association is registered with UK Companies House. It is referred to as a company limited by guarantee. This signifies that it works on a not-for-profit basis. Its work plan is crafted by an executive who is elected at the AGM. Only those registered with the HMRC and be a part of this executive that meets every quarter.